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Elkhart County, IN Short-Term Rentals: Taxes & Fees (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
5% of gross lodging income
Local ordinance
County Code § 36.045
State rate authority
I.C. 6-9-19-3
Collected by
County Treasurer
Proceeds fund
Convention and Visitor Promotion Fund
Fund created under
County Code § 31.020
Original enactment
Ord. 83M-001, June 11, 1983

Summary

Elkhart County levies a 5% innkeeper's tax on gross retail income from lodging under County Code § 36.045, which sets the rate under I.C. 6-9-19-3 and reaches any person who rents rooms, lodgings or accommodations to transient guests, including short-term rental hosts operating in the unincorporated county. The County Treasurer collects and deposits the proceeds into the Convention and Visitor Promotion Fund created under County Code § 31.020.

These county ordinances apply to unincorporated areas of Elkhart County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

§ 36.045 COUNTY INNKEEPER’S TAX.

(A) The innkeeper’s tax referenced at I.C. 6-9-19, and more specifically at I.C. 6-9-19-3, is hereby set at the rate of 5% on gross retail income derived from lodging income only.

(B) The innkeeper’s tax shall be levied against those persons who are identified by category at I.C. 6-9-19 as persons who may be subject to the tax. (Prior Code, § 6-9-18-3) (Ord. 83M-001, passed 6-11-1983, 83 CCM 124; Ord. CC 90-2, passed 3-21-1990, 90 CCM 49–51; Ord. CC 90-3, passed 3-21-1990, 90 CCM 49–51; Ord. OC 96-5, passed 6-8-1996)

Source: Indiana CodeView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2025 S-23: Supplement contains: Current through local legislation passed on or before July 31, 2025; and State Legislation current through 2025 Indiana Legislative Service, Pamphlet #3).

Full Breakdown

045, codified from Ord. 83M-001 (passed June 11, 1983) and last amended by Ord. C. 6-9-19-3. C. 6-9-19 as persons who may be subject to the tax,' language the county has never narrowed to exclude short-term rental hosts, vacation-rental operators or bed-and-breakfasts: any person renting rooms, lodgings or accommodations to transient guests in the unincorporated county falls within the same category as a hotel or motel operator. The ordinance carries forward the original Prior Code § 6-9-18-3 numbering and has been amended twice by the County Council, first by Ord.

CC 90-2 and Ord. CC 90-3 (both passed March 21, 1990), without changing the 5% rate. Proceeds do not go to the county's general fund. C. 6-9-19 into it, directing that the money 'may be expended only as permitted' by that same state statute. C. 6-9-19. 021, establishes the County Committee for the Development of Tourism and Conventions, whose members are appointed by, and serve at the pleasure of, the Board of Commissioners.

Violations & Fines

The county code does not print its own misdemeanor or civil penalty schedule for a lodging operator who fails to collect or remit the 5% tax. Sections 36.045 and 31.020 route enforcement, collection and fund administration entirely through I.C. 6-9-19, so a delinquent host or hotel faces whatever collection and penalty mechanism that state chapter provides rather than a separate County Code fine.

Frequently Asked Questions

Does Elkhart County's innkeeper's tax apply to Airbnb and short-term rental hosts?
Yes. County Code § 36.045(B) levies the tax against 'those persons who are identified by category at I.C. 6-9-19,' without carving out a separate rule for short-term rentals, so a host renting a room, cabin or house to transient guests in the unincorporated county falls into the same taxed category as a hotel or motel.
What is the innkeeper's tax rate in Elkhart County?
The rate is 5% on gross retail income derived from lodging income only, set by County Code § 36.045(A) under the rate authority in I.C. 6-9-19-3. The rate has not changed since it was last amended by Ord. OC 96-5 on June 8, 1996.
Where does the Elkhart County innkeeper's tax money go?
It does not go to the county general fund. County Code § 31.020 requires the County Treasurer to deposit every dollar into the Convention and Visitor Promotion Fund, which by state law may be spent only on the convention and tourism purposes I.C. 6-9-19 authorizes.
Who collects the Elkhart County innkeeper's tax?
The County Treasurer collects and deposits it under County Code § 31.020. A commission created under that same section, plus the County Committee for the Development of Tourism and Conventions established by § 31.021, oversees the promotion spending funded by the tax.

Sources & Official References

Other rules in Elkhart County

All Elkhart County rules

How Elkhart County compares: Cities with the Highest Short-Term Rental Taxes·Compare Elkhart County to another location·View the Indiana short-term rentals overview

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